GDS and Indonesia Investment Authority (INA) announced their partnership to develop and expand the data center landscape in Indonesia. The two entities recognize Indonesia's potential as an emerging data center market and share a common vision regarding the pivotal role that data centers play as a cornerstone in Indonesia's digital transformation. The partners plan to form an equity joint venture, as the vehicle for developing a countrywide data center platform.

The first project to be completed is the ongoing development of a hyperscale data center campus located in Nongsa Digital Park (NDP), Batam, which has been officially designated as a Special Economic Zone (SEZ) by the Indonesian government. By embracing GDS's advanced Smart DC (Data Center) solution and placing a strong emphasis on utilizing local renewable energy sources, the upcoming Batam data center campus has the potential to set an industry benchmark for the region. The GDS-INA partnership emerges at a pivotal moment as the data center industry experiences robust growth, propelled by digital economy transformation, IoT-driven technologies, the widespread transition to cloud computing, and anticipated proliferation of AI applications.

Market research projects that Indonesia's data center market capacity is projected to grow from 514MW in 2023 to 1.41GW by 2029. The country seeks to capitalize from this growing demand for data center services to attract both domestic and international investment to propel Indonesia into the digital economy. This endeavor marks INA's third significant investment in the digital sector, one of its four prioritized sectors.

INA, Indonesia's only sovereign fund, was launched in late 2020 with $5 billion from the government. Previously, INA participated in the IPO of Mitratel and is a notable stakeholder in Southeast Asia's largest telecommunication tower owner. Furthermore, in collaboration with partners like BlackRock, Allianz Global Investors, and Orion Capital Asia, INA bolstered Traveloka, Southeast Asia's leading travel platform.

Such strategic moves accentuate INA's unwavering commitment to propel Indonesia's digital transformation. Together, GDS and INA will work closely to develop best-in-class data center facilities nationwide, addressing the evolving digital consumption needs and elevating the digital infrastructure landscape in Indonesia and beyond.